UrtheCast Corp. announced that it has received a letter dated October 24, 2018 from the lenders under the credit agreement dated as of May 18, 2018 among UrtheCast, Deimos Imaging, S.L.U., the Lenders and U.S. Bank National Association, advising that an Event of Default has occurred under the Credit Agreement as a result of the recent resignation of Fabrizio Pirondini as an executive of Deimos. UrtheCast also announced that it has entered into a forbearance agreement dated October 25, 2018 with the Lenders pursuant to which the Lenders have agreed to refrain from taking any actions or seeking any remedies available to them under the terms of the Credit Agreement until November 23, 2018. Mr. Pirondini was identified as a key man under the Credit Agreement in May 2018, at a time when UrtheCast had interim leadership and was searching for a new chief executive officer. UrtheCast has requested that the Lenders remove Mr. Pirondini as a key man under the Credit Agreement or otherwise waive any Event of Default. As no amount is outstanding under the Credit Agreement, the practical consequence of the Event of Default is that the Lenders are not obligated to fund under the Credit Agreement. In addition, as the first drawdown under the Credit Agreement has not yet occurred, any such termination also would result in the termination of the Lenders' royalty entitlement and the cancellation of the Lenders' warrants issued under the Credit Agreement. The Board of Directors of UrtheCast believes that Mr. Pirondini's departure does not adversely impact its operational capabilities, and that his departure is facilitating a necessary restructuring of senior personnel and other optimization measures initiated by Donald F. Osborne, UrtheCast's Chief Executive Officer.